The World Bank has significantly improved its growth forecast for Ukraine as the international community responds to the strong performance of the Ukrainian economy in the first half of 2019 and the incoming Zelenskyy administration’s ambitious reform agenda.
A World Bank report released in mid-October raised the GDP forecast for 2019 from 2.7% to 3.4%, with the growth rate set to accelerate to 3.7% in 2020 before reaching 4.2% in 2021.
This upgrade comes after Ukraine posted a 4.6% year-on-year GDP increase during the second quarter of the current year, comfortably surpassing expectations.
The World Bank is the latest international organization to improve its outlook on Ukraine. The IMF recently revised its Ukrainian GDP growth forecast for 2019 upwards from 2.7% to 3%, while Morgan Stanley upgraded its GDP expectations for the country to 3.2% in 2020 and 3.6% in 2021.
This economic optimism is having a positive effect on Ukraine’s credit ratings. In September 2019, leading international ratings agencies Fitch and Standard & Poor’s both upgraded Ukraine from “B-“ to “B”.